State of Markets – NT December 2011

Essential information, plus expert insight on what is shaping the national property market...

NORTHERN TERRITORY

Fast Figures

88% – 5 year growth in Katherine, NT

$260,000 – average unit price in Katherine, NT

Now is the time to invest: LJ HookerHigh demand for NT rental properties and low vacancy rates make it the perfect time to invest in the Top End, according to real estate group LJ Hooker.

Darwin and Palmerston’s operations manager, George Pikos, said these were compelling reason to consider buying an investment property.

The rental vacancy rate in Greater Darwin is only 2.4 per cent, the lowest in the country, and it’s still on the decline, Mr Pikos said.

“That’s good news for landlords,” he said.

“Investors are watching Darwin and Palmerston property markets closely. With plenty of incentives, I am confident we are going to see a spike in investment purchases.”

Darwin property tipped to soarDarwin property prices are set to rise by 16.5 per cent in the next three years, according to a leading economic forecaster.

“Interstate projects such as the Olympic Dam mine expansion in South Australia would help feed the Territory price rise indirectly as the shipments would come through the north, boosting the economy,” BIS Shrapnel senior project manager Martin Bregozzo said.

Higher income levels stemming from the mining boom were also a contributing factor, he said.

A recent BIS Shrapnel report found the underlying strength of the Australian economy, stable interest rates in the short term and high immigration would be the main drivers of this growth.

These sentiments were echoed by Australian Property Monitors’ senior economist, Andrew Wilson.

Mr Wilson told Smart Property Investment that despite repeated speculation about a property crash, Australia has the fundamentals in place for future growth.

“Over the medium to longer term, there is always the prospect of growth in the Australian property market because the fundamentals are very strong. These are a shortage of supply, a growing population and a robust economy,” he said.